Statement Made Before Customs Officer U/S 108 Customs Act Over Goods Seizure Not Admissible In Evidence: Delhi High Court

The Delhi High Court has held that statements made by an assessee to the Customs Department under Section 108 of the Customs Act 1962, upon seizure of its goods, is not admissible as evidence in court of law.“Statements under Section 108 would not be admissible in evidence,” said a division bench of Justices Prathiba M. Singh and Shail Jain.Section 108 deals with the power of customs officers to summon persons to give evidence and produce documents. It stipulates that any Gazetted Officer of...

S.110 Customs Act | Extension To Issue SCN Must Be Granted Before Expiry Of Initial Six-Month Period: Delhi High Court

The Delhi High Court has made it clear that the six-month extension contemplated under Section 110 of the Customs Act 1962 for issuance of a show cause notice after detention of goods by the Customs must be issued before expiry of the initial six-month window.For context, Section 110 deals with Seizure of goods. It stipulates that where any goods are seized, and no notice is given within six months of the seizure, the goods shall be returned. Provided that the Principal Commissioner may, for...

Delhi HC Allows Time-Barred Appeal Against Customs' Confiscation Of Gold, Says Traveller Cannot Be Left Remediless Due To Wrong Legal Advice

The Delhi High Court recently allowed an air traveller to prefer a time-barred appeal against confiscation of gold by the Customs Department, upon his arrival from Thailand.In doing so, a division bench of Justices Prathiba M. Singh and Shail Jain said, “the Petitioner cannot be rendered completely remediless in this matter as he may have proceeded on the legal advice.”The Petitioner had claimed that he was wrongly advised by the Customs Department that there is no remedy available, as absolute...

Can Customs Issue SCN For IGST Recovery? Delhi High Court Issues Notice To Customs & GST Dept; Seeks Joint Affidavit

The Delhi High Court has issued notice in a writ petition against the Show Cause Notice by the Customs Department, instead of the GST Department, for recovery of Integrated Goods and Services Tax (IGST) amounting to about Rs. 5 lakhs from the exporter. The Division Bench comprising Justice Prathiba M. Singh and Justice Shail Jain has listed the matter for February 24, 2026 while observing that “However, insofar as the question as the inter-play between the provisions of the Customs...

Customs Cannot Take Independent View Against CESTAT Classification; Wheat Gluten Eligible For DFIA Exemption: Madras High Court

The Madras High Court has held that once CESTAT has classified wheat gluten as eligible for DFIA (Duty-Free Import Authorisation) exemption, Customs authorities are bound by those findings and cannot independently deny the exemption benefits. Justice N. Anand Venkatesh stated that the impugned orders have been passed only on the ground that Wheat Gluten is not covered under the DFIA Licence and, therefore, the assessee is not eligible to claim exemption. If the CESTAT has already...

Reconsidering Cap On Value Of Gold Jewellery Permitted At Airports: CBIC To Delhi High Court

The Central Board of Indirect Taxes and Customs has informed the Delhi High Court that it is considering increasing the cap on the value of gold that can be carried by a person travelling to India by air.Currently, the Baggage Rules 2016 permit any jewellery of 20 grams with a value cap of Rs. 50,000/- in case of a man and 40 grams with a value cap of Rs. 1,00,000/- in case of a woman to be cleared free of duty.A division bench led by Justice Prathiba M. Singh had earlier highlighted that this...

Amount Deposited Under Protest During Customs Probe Can Be Adjusted Towards Pre-Deposit In Appeal: Delhi High Court

The Delhi High Court has held that an amount deposited with the Customs under protest, during investigation by the Department, can be adjusted towards pre-deposit to be made when filing appeal against its order.For context, Section 129E of the Customs Act, 1962 requires deposit of 7.5% of the amounts which are in dispute, when filing an appeal before Commissioner (Appeals) or CESTAT.In the case at hand, the Petitioner contended that the amount required for pre-deposit is already fully satisfied...

Customs Brokers Creating Fake Firms Jeopardise Real Exporters: Delhi High Court Forfeits ₹2 Lakh Over Alleged Duty Drawback Fraud

The Delhi High Court has ordered forfeiture of ₹2,00,000/- out of the ₹5 lakh security deposit made by a Customs Broker at the time of obtaining license, citing allegations of duty drawback fraud against it.A division bench of Justices Prathiba M. Singh and Shail Jain were dealing with an appeal preferred by the Commissioner of Customs against a CESTAT order, restoring the Respondent-broker's license and setting aside forfeiture of security deposit.The Department claimed that the broker...

Delhi High Court Refuses To Entertain Foreign National's Plea Alleging Illegal Arrest By Customs Dept In Gold Smuggling Case

The Delhi High Court recently refused to entertain the writ petition moved by a Turkmenistan national, alleging that the Indian Customs Department had illegally arrested him in connection with alleged gold smuggling back in 2018.A division bench of Justices Prathiba M. Singh and Shail Jain observed that the Department had produced the seized gold jewellery in a sealed cover and the same, upon inspection, could not be termed as 'personal effect' of the Petitioner.“The box was unsealed by the...

Delhi High Court Refuses To Waive Pre-Deposit For Customs Brokers' Appeal Against ₹30 Crore Penalty, Says They 'Misused' License

Stating that Customs Brokers have a significant responsibility under the Customs Act, the Delhi High Court refused to waive the pre-deposit for appeal by certain Customs Housing Agents against ₹30 crore penalty imposed upon them over import fraud.A division bench of Justices Prathiba M. Singh and Shail Jain observed,“The clear position is that the Customs Brokers have a significant responsibility under the Customs Act as also the Customs Brokers Licensing Regulations, 2018. The CHA ought to...

Delhi High Court Rejects Appeals By Customs House Clearing Agent Staff Penalised In ₹3.4 Crore Cigarette Smuggling Case

The Delhi High Court recently refused to show any leniency to two employees of a Customs House Clearing Agent (CHA), found involved in smuggling of cigarettes worth Rs.3,40,74,000/-.A division bench of Justices Prathiba M. Singh and Shail Jain observed that CHAs and their employees are responsible to ensure discharge of obligations under the Customs Brokers Licensing Regulations, 2018.Reliance was placed on Commissioner Of Customs (Airport And General) v. M/S Jaiswal Import Cargo Services Ltd...

Customs Act | Delhi High Court Allows BSNL To Belatedly Challenge ₹12.63 Crore Penalty For Misdeclaration Of Goods

The Delhi High Court has allowed BSNL (Bharat Sanchar Nigam Limited) to belatedly challenge the Rs. 12,63,01,812/- imposed upon it by the Customs Department for misdeclaration of imported goods.A division bench of Justices Prathiba M. Singh and Shail Jain noted that the public autonomous service provider showed no valid justification for the delay in approaching CESTAT however, “considering the fact that there was a voluntary declaration by B.S.N.L., prima facie there appears to be some merit in...